A look at today's QQQ rally in context. Once the trading channel is decisively broken it is not unusual for price to retrace back to the underside of the channel before resuming its dive, i.e., "the kiss good-bye." That appears to be what is happening with this morning's rally: Another look: The reward side of the set-up dwarfs the risk side, so there is nothing to do at this point except wait it out. The bearish pattern would be called into question only by price regaining the channel. In that case we will turn all of our attention to TSLA calls in front of earnings next Wednesday. As much as I would hate to give back profits on index puts, those gains pale in comparison to what is possible on one short-term call trade ahead of an unexpected and massively bullish announcement. Why else would Elon be on this call? Gamblers: Watching the TSLA Apr 14 2022 $1500C at around $20 ($2,000). Any unexpected good news next week could send this call, at least temporarily, up 100%. This is not a new PRO trade, just sharing an idea with my finger on the trigger.
